|Senate Counsel & Research||State of Minnesota|
|S.F. No. 154 - Medical Assistance and Alternative Care Estate Recovery and Liens|
|Author:||Senator Dennis Frederickson|
|Prepared by:||David Giel, Senate Research (651/296-7178)|
|Date:||February 1, 2005|
S.F. No. 154 reinstates the pre-2003 state policy with respect to estate recoveries for the cost of medical care. It reverses the policy adopted in 2003 that extends a deceased's interests in a life estate or joint tenancy after death for the purposes of Medical Assistance (MA) or Alternative Care (AC) recovery. It reverses the policy that allows the state to recover from estates for the purposes of reimbursing AC costs. It makes a number of technical changes consistent with these policy reversals. It requires any amounts collected since 2003 under the policies being reversed to be to be refunded. It includes a blank appropriation to replace the lost revenue that would result from passage of this bill.
Section 1 (256B.15, subdivision 1) deletes language that continues life estates and joint tenancies after a recipient's death for purposes of MA estate claims. This section also reinstates language that was in effect until 2003 that prohibited MA estate claims to collect for AC service costs.
Section 2 (256B.15, subdivision 1a) excludes AC costs from MA estate claims and removes language allowing counties to retain ten percent of their AC related collections.
Section 3 (256B.15, subdivision 1d) deletes, from a subdivision establishing the effect of a notice of potential claim, references to the continuation of life estate and joint tenancy interests after death.
Section 4 (256B.15, subdivision 1e) deletes, from a subdivision regarding the claimant's right to release a lien, references to the continuation of life estate and joint tenancy interests.
Section 5 (256B.15, subdivision 1f) deletes, from a subdivision regarding the establishment of liens against real estate, references to the continuation of life estate and joint tenancy interests.
Section 6 (256B.15, subdivision 1h) deletes, from a subdivision regarding the estates of specific MA recipients, references to the continuation of life estate and joint tenancy interests.
Section 7 (256B.15, subdivision 1i) deletes, from a subdivision regarding the estates of MA recipients survived by others, references to the continuation of life estate and joint tenancy interests.
Section 8 (256B.15, subdivision 1j) deletes, from a subdivision regarding the estates of MA recipients survived by other survivors, references to the continuation of life estate and joint tenancy interests.
Section 9 (256B.15, subdivision 2) deletes another reference to MA estate claims for AC costs.
Section 10 (256B.15, subdivision 3) reinstates language that was in effect before the 2003 session barring estate claims if the decedent, who was either single or the surviving spouse of a married couple, is survived by a child who is under age 21, or is blind, or is permanently and totally disabled.
Section 11 (256B.15, subdivision 4) deletes language adopted in 2003 authorizing liens against homestead property in an estate for any unpaid balance of a claim in cases where the claim is limited to the value of the nonhomestead property in the estate.
Section 12 (514.981, subdivision 6) deletes language added to the state lien law in 2003 authorizing liens against life estates and joint tenant interests.
Section 13 (524.3 805) deletes language added to the Uniform Probate Code in 2003 referencing MA estate claims for AC costs.
Section 14 relates to refunds and notices.
Paragraph (a) requires refunds to be paid of any amounts collected from the estate of a recipient of alternative care services or because of the continuation of life estates and joint tenancies after the death of the recipient.
Paragraph (b) makes lien notices ineffective against life estates or joint tenancies after the death of the recipient unless continued after death by the document creating the life estate or joint tenancy.
Section 15 is a blank appropriation section.
Section 16 is a repealer section. It repeals Minnesota Statutes, section 256B.15, subdivision 1g, which makes a life estate or joint tenancy interest part of a deceased's estate for purposes of MA estate recovery. It also repeals Minnesota Statutes, sections 514.991 through 514.995. These sections were adopted in 2003 and establish Alternative Care liens and procedures for enforcing them.
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